Thyssenkrupp swings to quarterly net loss as one-offs bite

By Christoph Steitz

FRANKFURT (Reuters) -Thyssenkrupp swung to a net loss in its fiscal third quarter due to higher-than-expected costs for legacy projects at its plant engineering business, the conglomerate said on Wednesday, adding it had also halted the sales process for one of its units.

The company posted a net loss of 54 million euros ($59 million) for the April-to-June period, down from a profit of 83 million a year earlier, it said, also blaming restructuring expenses at its materials trading division.

Thyssenkrupp (ETR:) also said that a process to sell its Automation Engineering business had been halted and that the company was now exploring deeper restructuring measures for the division’s powertrain business unit.

The news reflect mounting challenges for the former German industrial icon, which had to cut its annual outlook for the third time last month and is in the midst of a conflict-ridden process to divest half of the shares in its steel division.

“Strongly opposing market trends and one-time effects offset the progress made in the transformation of Thyssenkrupp in the third quarter,” Chief Financial Officer Jens Schulte said.

($1 = 0.9113 euros)